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Will the inspector for lender still approve a house to be in fair condition if the exterior A/C unit is missing on a HUD home?
Submitted offer to HUD, and external AC unit is missing! The HUD inspection says ac unit works fine! Im pre approved for a conventional loan. Can this stop me from getting financing? Can the inspector still preform his tasks without the unit?
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*update* im putting down 5%, and the lender knows its missing, only thing he said was the house has to be in "fair condition" what is considered to be fair? im sure the hvac missing will lover the appraisal but i dont see that being a issue. My agent has contacted HUD and there is no repair money, and they will not replace it, but i adjusted my offer.
If you are applying for an FHA loan, the cost of replacing/fixing the AC unit should be included in an escrow account. The escrow has to be set up at closing and repairs made within a specific period of time after closing. Lender doing the FHA loan needs to be familiar with escrows and how they work. FHA will approve loan (providing all other criteria met)even though repairs are needed by setting up the escrow.
If the unit is not functional at time of inspection, then the inspector cannot test it, even if it "works" and just isn't installed. That has to be functional prior to inspections if you want to have it in the report. It sounds like you are saying the furnace is working, but the HVAC is not. Typically a lender will require the HVAC system to work properly, so that may become an appraisal requirement. Talk to your lender and agent.
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